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Redistributive Effects of Public Expenditures in the Urban and Rural Areas of Pakistan

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Listed:
  • Nasim Shah Shirazi

    (Faculty of Economics and Management Sciences, International Islamic University, Malaysia)

  • Muhammad Ilyas

    (Allama Iqbal Open University, Islamabad, Pakistan)

  • Mehboob Ahmad

    (Allama Iqbal Open University, Islamabad, Pakistan)

Abstract

Utilizing HIES (1992-93) data and Economic Survey of Pakistan (various issues), this article focuses on the effects of government expenditures on the distribution of income across various income groups in the urban-rural areas of Pakistan. Net National Product (NNP) is used as the income base. Results show that the lower income groups get the lower absolute public expenditure benefits than higher income groups in both the urban and rural areas of Pakistan. However, public expenditure benefits as a percentage of incomes across various income brackets, show that the lowest income group gets the maximum benefits and the subsequent income groups receive at a decreasing rate. Comparing urban and rural public expenditure benefits results depict that urban households enjoyed more public expenditure benefits than their rural counterparts.

Suggested Citation

  • Nasim Shah Shirazi & Muhammad Ilyas & Mehboob Ahmad, 2002. "Redistributive Effects of Public Expenditures in the Urban and Rural Areas of Pakistan," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 3(1), pages 69-76, March.
  • Handle: RePEc:sae:soueco:v:3:y:2002:i:1:p:69-76
    DOI: 10.1177/139156140200300104
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    References listed on IDEAS

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    1. Aisha Ghaus*, 1989. "The Incidence Of Public Expenditure In Karachi," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 8(1), pages 86-109.
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